Now Playing

3/15/2012 2:04PM

The Hot Spot for the Young, Techie and Rich

Newly minted tech millionaires in San Francisco are shunning mansions in wealthy neighborhoods and leafy suburbs in favor of modest homes and condos in grittier parts of the city. Geoffrey Fowler has details on Lunch Break. Photo: Jason Henry for WSJ

This transcript has been automatically generated and may not be 100% accurate.

... I ... here ... back in the dotcom boom of its kind in two thousand ... he has been a lot of ... tech folks buying these homes in some of the more prestigious neighborhoods of San Francisco or or in this leafy suburbs as you call them ... but in the last couple of years as we had ... the booming times for social networking services like Facebook and ... Zynga and linked in ... they're focusing on different neighborhoods in separate Cisco now we've got the years the Commission which is a formerly Hispanic neighborhood that is increasingly being Center five ... were seen in the last year or so prices go straight through the roof there about forty four percent ... up for the average price of a house in this mission neighborhood ... of San Francisco in December versus the year before ... well anyway and adding to renovate these places Jeff Award basement moving into them ... and isn't a lot these are very young folks mean in an even have a sense of architectural style yet I would imagine ... the street these are young folks which are what they do have an interesting Cintas output is all the row it's different from ... the of Gordon Gekko esque mansions aisles than we might've seen ... a decade ago the one in all Victorian or something this really unique and different media style from the seventies even that ... that that order money might turn their nose up ... at that these folks see iam as that ... as as excellent ... year one of the biggest factors in determining which neighborhoods are hot right now in separate Cisco is the box ... the plasticity of the Bible spots ... like this all on Friday that subtle but that threat because this is how folks get to work ... if you're young you don't wanna have a car is on a bicycle around ... you might buy a house that you want to be near one of the shuttle buses you can use to get down to work in Silicon Valley ... at Facebook a war ... of all go bore you name it they all have these buses of the ... house is yours to the bus stops go ... to Boston and price I think you just find a new real estate and kept the shuttle that ... that's right and if you talk about here I the the the local economy because I can imagine that when you have the concentration ... of these newly minted millionaires and billionaires in some cases that the local economies for that ... springs up around it and morphs to fit their needs what he's saying ... it's completely remaking some of these neighborhoods to the mission as I mentioned before which asserted that the Hubble others ActiveE use to be a mostly on the Hispanic community a lot of folks there who don't have a lot of money but now we've got all these ... hipster take the kids in the coming and they want their coffee shops with ... single serving coffee ... cups one made one of the time is even a passive and a past a shop that sells local honey so tiny on the race from that neighborhood Nielsen had some chickens running around before just because that's what ... these folks want Cory deco would never said that they can see now that don't get ... as the daughter of what was it was a happy and very quickly ... they mentioned I think the CEO of Twitter's part of its executives from Facebook what about the crying in areas like this is that factor are not so much ... you know it's a really good point that this is that these are never going to change and there have been some murders and attacks that happening here ... um you know there's two known gangs are boring each other in some these neighborhoods ... um some plots that are followed by the tech community to map out the crimes and also my for the next two were the best cupcake shops are ... no folks it's about to ... living together and they're trying to figure that out but to ... that is that ... a factor that might scare away some older couples of ... both the families of these younger tech ... aam folks they wanna be in the middle of this ... writing ... so one of the community